Spectris off to 'strong' start in Q1, confident on outlook

Spectris got off to a strong start to 2022 with organic sales and order intake both rising sharply on the back of the continuing recovery in its end markets and new products.

Reflecting the above, the precision instrumentation and controls manufacturer's boss, Andrew Heath, exuded confidence.

"Strong organic growth is supported by new products driving market share gains as we take action to mitigate inflation and supply chain challenges," he said.

"Our strong order book provides confidence in continued sales momentum, supporting our outlook and positive prospects for 2022. Our focus on R&D and sustainability underpins continued future growth."

Heath also mentioned the potential for deal-making, thanks to Spectris´s "strong" balance sheet, to further bolster growth.

On a like-for-like basis, sales advanced 12% over the three months ending on 31 March, led by 15% growth in Asia, and orders climbed 29%. Industrial Solutions saw the fastest growth in sales, increasing by 15%, followed by a 14% rise at Malvern Panalytical.

However, disposals during the period lowered sales by 7% and combined with a small foreign exchange headwind saw reported sales rise by just 3% to £298.9m.

During the period, Spectris sold its Omega unit, a developer of sensing, control, and monitoring technologies, to Arcline Investment Management for £403m or 20.4 times its operating profits in 2021.

Net cash at period end stood at £133.1m as Spectris announced the start of the first tranche of a £300m share buyback programme.

As of 1000 GMT, shares of Spectris were trading 4.91% higher to 2,799.0p.